Ireland has the fourth highest excise duty on beer in Europe, according to a report published today.
It found the tax was nine times the EU average with the Government pulling in €427 million last year.
But despite the costs the study by international consultants Ernst & Young found Ireland was the third highest exporter of home-brewed beer.
Dermot Quinn, industrial, commercial and technology partner with Ernst & Young, warned against any possible further hikes to the tax.
“This report proves that Ireland’s beer sector remains a key component of our export economy and the Government needs to ensure that their future approach to taxation policy does not further negatively impact an industry already heavily burdened by taxation,” he said.
The continent-wide report — “Contribution made by beer to the European economy” — carried out on behalf of the Brewers of Europe found only the UK, Finland and Norway had higher excise duties than Ireland.
Ireland is the third biggest exporter of domestically produced beer behind the Netherlands and Belgium.
But the study found production had dropped in recent years to 8.846 million hectolitres in 2008 from 9.377 and 9.270 hectolitres in 2006 and 2007 respectively.
Meanwhile the report concluded a greater number of Irish drinkers prefer a tipple in the pub than other Europeans.
Just under a third of people buy alcohol in supermarkets or off-licences to drink at home here compared with almost two-thirds across Europe.
But the study found the smoking ban dented the hospitality sector with hotels and pubs recording a 4 per cent drop in sales since 2007 while off-licences and shops have seen an 8 per cent hike.
PA